Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Boomerang Systems Chapter 11 Petition Filed

Boomerang Systems and three affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 15-11729. The Company, which designs, engineers, manufactures, installs, services and markets automated parking systems, is represented by Joseph J. McMahon, Jr. of Ciardi, Ciardi & Astin. According to Court documents, , Boomerang had not yet turned a profit on its innovative automated parking systems. Accordingly, Boomerang relied largely upon debt to fund its operations until it could build a sufficient market for its products to generate the sales necessary to achieve a profit. In order to effectuate this restructuring, Boomerang has obtained post-petition financing from Game Over Technology Investors, LLC in the amount of at least $2.5 million to finance the Debtors' operations pending confirmation of a chapter 11 plan of reorganization. The D.I.P. Facility will provide the Debtors sufficient liquidity to finance their operations until emergence from Chapter 11. The Debtors are also seeking authorization to use cash collateral on an interim basis, which, together with the D.I.P. Facility, will be used by to support their working capital requirements and other general corporate purposes.

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